I thank Jason Abrevaya, Jack Barron, Mel McMillan, Jonathan Temple and a referee for their helpful comments. I thank Purdue University for providing the financial support necessary to acquire data from the Employment Service of Slovenia. I am also grateful to representatives of the Employment Service of Slovenia and the Agency of the Republic of Slovenia for Public Legal Records for letting me use the Slovenian data sets and Jack Barron for making the US data available.
Do Employers Respond to the Costs of Continued Search?*
Version of Record online: 21 OCT 2009
© Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2009
Oxford Bulletin of Economics and Statistics
Volume 72, Issue 2, pages 221–245, April 2010
How to Cite
Brenčič, V. (2010), Do Employers Respond to the Costs of Continued Search?. Oxford Bulletin of Economics and Statistics, 72: 221–245. doi: 10.1111/j.1468-0084.2009.00573.x
- Issue online: 17 FEB 2010
- Version of Record online: 21 OCT 2009
- Final Manuscript Received: August 2009
An analysis of US and Slovenian vacancy data sets reveals that an employer who is searching to fill a job vacancy is more likely to fill the vacancy by hiring an under-qualified worker when the search costs are higher; when, at the start of the search, the employer has less time to search at low cost; and during the week following an increase in search costs. These are interesting findings not only about the effects of search costs on employers’ hiring decisions, but also because they suggest that search frictions in the two labour markets may be considerable.